Re: Settlement Costs

[Michael Dillon <michael () memra com>]

On Fri, 1 Nov 1996, William Allen Simpson wrote:

> > Date: Wed, 30 Oct 1996 17:31:39 -0500
> > From: Scott Huddle <huddle () mci net>
> > Your argument changes from an economic one to a political one.  If
> > you want to run for office, there are better forums.  If you want
> > to convince people who are building commercial networks, get
> > some facts.

> Now, that may have been an old report.  I'm sure MCI would be delighted
> to reveal its current figures for plant depreciation and maintenance,
> and the amount that it pays (the RBOCs) for unit timing and printing and
> mailing the statements, along with all the payment collection costs.
>
> When you are ready to send that to this list, I will accept your further
> criticism here of Dillon's numbers.  Thank you.

Somebody who should know these things told me privately that the cost of
billing systems for MCI is currently 78%

While it can be difficult to figure these things out for sure I believe
that a significant element of the push by RBOC's into the ISP business is
to protect themselves in case the billing costs bubble is burst and they
are basically forced to flat-rate monthly billing or die. With an ISP
subsidiary they have a good chance of surviving by placing resources in
the ISP and letting the metered rate portion of the company wither away.

Michael Dillon                   -               ISP & Internet Consulting
Memra Software Inc.              -                  Fax: +1-604-546-3049
http://www.memra.com             -               E-mail: michael () memra com

- - - - - - - - - - - - - - - - -